Are there legal repercussions for hosting DNS? I guess there are entries for “naughty” sites (as defined per jurisdiction), but seems pretty innocuous.

I’m sure that’d be the defense they’d make but remember that laws and courts aren’t board games. If someone passes a law forbidding anyone from providing access to something or assisting with that access, you can’t rule out getting dragged into court because your DNS service helped someone get content their ISP’s servers blocked. Google or Cloudflare have the same risk but also orders of magnitude more lawyers than Wikipedia.